News

Stepan Announces Agreement to Acquire a Surfactant Production Facility and a Portion of its Associated Surfactant Business in Mexico

NORTHFIELD, Ill., June 13, 2017 /PRNewswire/ -- Stepan
Company (NYSE: SCL), through a subsidiary in Mexico, today reported that it has
reached an agreement with BASF Mexicana, S.A. DE C.V. to acquire its surfactant
production facility in Ecatepec, Mexico, and a portion of its associated
surfactants business. The facility is located close to Mexico City and has over
50,000 metric tons of capacity, 124,000 square feet of warehouse space, a large
laboratory and office space.

The definitive agreement is subject to closing conditions and the satisfaction
of certain other requirements. The transaction is expected to close in the
fourth quarter of 2017 and is expected to have minimal impact on Stepan's 2017
financial results. Financial terms of the transaction were not disclosed.

"The acquisition supports the Company's growth strategy in Latin America.
We believe this acquisition significantly enhances Stepan's market position and
supply capabilities for surfactants in Mexico and positions us to grow in both
the Consumer and Functional markets for surfactants," said F. Quinn Stepan
Jr., Chairman, President and CEO of Stepan Company.

CORPORATE PROFILE

Stepan Company is a major manufacturer of specialty and intermediate chemicals
used in a broad range of industries. Stepan is a leading producer of
surfactants, which are the key ingredients in consumer and industrial cleaning
compounds. The Company is also a leading supplier of polyurethane polyols used
in the expanding thermal insulation market and C.A.S.E. (Coatings, Adhesives,
Sealants, and Elastomers) industries.

Stepan is a 2017 U.S. Environmental Protection Agency Safer Choice Partner of
the Year award winner.

Headquartered in Northfield, Ill., Stepan utilizes a network of modern
production facilities located in North and South America, Europe and Asia. The
common stock is traded on the New York Stock Exchange (NYSE) under the symbol
SCL. For more information about Stepan Company please visit the Company online
at www.stepan.com.

This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements include, but
are not limited to, statements about estimated costs expected to be incurred in
connection with the facility closure; the timing of when such costs are
expected to be incurred, the financial impact of such facility closure, future
financial and operating results, our plans, objectives, expectations and
intentions with respect to future operations, products and services: and other
statements identified by words such as "anticipate",
"believe", "estimate", "expect",
"intend", "may", "objective", "outlook",
"plan", "project", "possible",
"potential", "should" and similar expressions. These
forward-looking statements are based upon the current beliefs and expectations
of our management and are inherently subject to business, economic and
competitive risks and uncertainties, many of which are difficult to predict and
beyond our control, that could cause actual results to differ materially from
those projected, anticipated or implied.

The most significant of these uncertainties include (but are not limited to),
the following: satisfactory completion of due diligence and other requirements
to complete the potential acquisition, prospects for our foreign operations,
foreign currency fluctuations, certain global and regional economic conditions,
the probability of future acquisitions and the uncertainties related to the
integration of acquired businesses, the probability of new products, the loss
of one or more key customer or supplier relationships, the costs and other
effects of governmental regulation and legal and administrative proceedings,
including the expenditures necessary to address and resolve environmental
claims and proceedings, and general economic conditions and the other risk
factors described in Stepan Company's Form 10-K, Form 8-K and Form 10-Q
reports. These forward-looking statements and the information set forth herein
speaks only as of the date hereof, and Stepan Company undertakes no obligation
to update or revise the forward-looking statements, whether as a result of new
information, future events or otherwise.